Vodacom Tanzania's Profit Nearly Triples on M-Pesa and Mobile Data Surge

Vodacom Tanzania's net profit nearly tripled to TZS117.8bn (approximately US$44M) in the six months ended September 2026. The significant growth was driven by a surge in M-Pesa and mobile data revenue. According to the company's H1 2026 results, reported on 9 November 2026, service revenue rose 20.8% to TZS1.067tn. This growth was largely attributed to the increasing demand for digital services.

M-Pesa revenue climbed 26.2% to TZS443.3bn, while mobile data revenue rose 24.6% to TZS319.2bn. Together, financial services and data accounted for 47.9% of total service revenue in the half. The growth in M-Pesa revenue was driven by a 40% increase in transaction values and volumes. This significant growth in M-Pesa and mobile data revenue highlights the increasing importance of digital services in Vodacom Tanzania's operations.

The company's EBITDA rose 33.1% to TZS425.8bn, with the EBITDA margin widening by 4.2 percentage points to 39.5%. The net profit margin also improved by 6.3 percentage points to 10.9%. Vodacom Tanzania's chief executive, Philip Besiimire, attributed the performance to stronger customer usage and sustained network investment. He stated that customers used more of their services, while the company continued to invest in its network and M-Pesa platform.

Capital expenditure rose 63.1% to TZS246bn during the reporting period. However, operating free cash flow also rose 64.3% to TZS90.3bn, showing that the company generated more cash even as it funded capacity upgrades. This balance signals disciplined capital deployment rather than margin erosion. The investment went into 4G and 5G coverage expansion and an upgraded M-Pesa platform.

The growth in Vodacom Tanzania's revenue rests on usage volume, not price increases alone. Mobile money deepens customer engagement, while data demand supports recurring revenue. Tanzania's expanding digital financial participation provides a structural tailwind for these figures. Deeper mobile money penetration across income groups widens the addressable base for M-Pesa.

Vodacom Tanzania paid a final dividend of TZS23.91 per share for the 2025/26 financial year. The total payout was TZS53.6bn, distributed on 15 October 2026. Investors should track M-Pesa transaction growth, 4G and 5G adoption rates, and operating free cash flow in the next reporting period to gauge whether this trajectory holds.

Smartphone users rose 15.3%, lifting 4G traffic and mobile data demand across the network. The company's results show that growth is driven by increasing usage of its services, and investors should monitor key performance metrics in the next reporting period. The significant growth in Vodacom Tanzania's profit highlights the company's strong performance in the digital services sector.

Key points

• Vodacom Tanzania's net profit rose 183% to TZS117.8bn in H1 2026, driven by a surge in M-Pesa and mobile data revenue.
• M-Pesa revenue climbed 26.2% to TZS443.3bn, while mobile data revenue rose 24.6% to TZS319.2bn.
• The company's EBITDA rose 33.1% to TZS425.8bn, with the EBITDA margin widening by 4.2 percentage points to 39.5%.